The recovery proceedings have been initiated against Gurmeet Singh and IS Sukhija after they failed to pay fines imposed on them by the Securities and Exchange Board of India (Sebi) in June 2020.
Sebi had levied a fine of Rs 1 crore on Singh and Rs 20 lakh on Sukhija in a case pertaining to manipulation in the issuance of global depository receipts (GDRs) by Beckons Industries.
In two separate attachment notices on Thursday, Sebi has ordered the attachment of bank as well as demat accounts of the two individuals to recover the pending dues.
The pending dues of Rs 1.3 crore comprise initial penalty amount, interest, and recovery cost, it added.
Sebi asked banks and depositories not to allow any debit from their accounts. However, credits have been permitted.
Further, the capital markets watchdog has directed the banks to attach all accounts, including lockers, held by them.
The regulator said there is sufficient reason to believe that the defaulters (the two individuals) may dispose of the amounts in the bank accounts and securities in the Demat accounts and “realisation of the amount due under the certificate would, in consequence, be delayed or obstructed.”
In a notice to all banks in the country, the regulator ordered to “attach with immediate effect…all accounts by whatever name, including lockers of the defaulter, held either singly or jointly with any other person, in your bank”.
The regulator has also asked banks, depositories, and mutual funds to provide details of all accounts held by Singh and Sukhija, including copies of account statements. It has also sought complete information on all loan accounts and advances.
